The Effect of School Resources on Pupil Attainment: a Multilevel Simultaneous Equation Modelling Approach

Summary Improving educational achievement in UK schools is a priority, and of particular concern is the low achievement of specific groups, such as those from lower socio-economic backgrounds. An obvious question is whether we should be improving the outcomes of these pupils by spending more on their education. The literature on the effect of educational spending on the achievement of pupils has some methodological difficulties, in particular the endogeneity of school resource levels, and the intraschool correlations in pupils’ responses. We adopt a multi-level simultaneous equation modelling approach to assess the effect of school resources on pupil attainment at age 14 years. The paper is the first to apply a simultaneous equation model to estimate the effect of school resources on pupils’ achievement, using the newly available national pupil database and pupil level annual school census.